Solvay to Close Composite Plants Amid Deepening Aerospace Crisis
Solvay to Close Composite Plants Amid Deepening Aerospace Crisis
(Bloomberg) -- Solvay SA said it will close two plants making composites for Airbus SE and Boeing Co. in a sign the deepening aerospace crisis is hitting suppliers of even the latest aircraft materials.
The Belgian chemical maker is adding to savings achieved in the past year following the grounding of Boeing’s 737 Max. The latest measures from Solvay Chief Executive Officer Ilham Kadri will lead to about 570 job cuts, or 20% of the workforce in Solvay’s composites unit, the Brussels-based company said Friday.
The closure of sites in Manchester, England, and Tulsa, Oklahoma, mark the latest example of a permanent downsizing now taking place across in the aircraft industry.
Before the coronavirus crisis, composites had been a bright spot. With each new jet, Airbus and Boeing strove to replace metal parts with advanced materials to save on weight and boost fuel efficiency. Now, both major planemakers are preparing to slash jobs, with the impact being felt by their suppliers.
Solvay said it will book a 30 million-euro ($32 million) charge to cover expenses related to the restructuring plan. The savings generated are expected to be double that amount by the year-end.
“The steps we are taking are necessary to adapt to the dynamic environment,” said the CEO, a former Dow Chemical Co. executive.
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